Financial Statements: A Step-by-Step Guide to Understanding and Creating Financial Reports (Over 200,000 copies sold!)
- Downloads：2457
- Type：Epub+TxT+PDF+Mobi
- Create Date：2022-09-05 08:52:48
- Update Date：2025-09-06
- Status：finish
- Author：Thomas R. Ittelson
- ISBN：1632652072
- Environment：PC/Android/iPhone/iPad/Kindle
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Summary
Simply the clearest and most comprehensive introduction to financial reporting available。 No accounting background is required。
“Finally， a handbook that takes the mystery out of accounting principles。” —Margi Gandolfi， VP Marketing/Strategic Planning of New York Blood Center
This edition replaces all previous editions of this bestselling title based on the revised and expanded edition corrected and back to the basics。
Financial Statements is a perfect introduction to financial accounting for non-financial managers， investors， business students， lawyers， lenders， entrepreneurs， and more。 Financial Statements deftly shows that all this accounting and financial-reporting stuff is not rocket science and that anyone can understand it！
Ittelson empowers non-financial managers by clearly and simply demonstrating how the balance sheet， income statement， and cash flow statement work together to offer a snapshot of any company’s financial health。 Every term is defined in simple， understandable language。 Every concept is explained with a basic， straightforward transaction example。 And with the book’s uniquely visual approach， you’ll be able to see exactly how each transaction affects the three key financial statements of the enterprise。 Each statement paints a different and essential picture—the “three-legged stool” of company reporting:
• The income statement shows the manufacturing （or service offerings） and selling actions of the company that result in profit or loss during a period。 It gives a very important perspective on the company’s performance， its profitability。
• The cash flow statement details cash into and out of the company for a period。 You need money to make money。 Running out of cash is bad。 Duh。
• The balance sheet records at the end of a period， an instant in time， what the company owns and what it owes， including the owners’ stake， called shareholders’ equity。
“Finally， a handbook that takes the mystery out of accounting principles。” —Margi Gandolfi， VP Marketing/Strategic Planning of New York Blood Center
This edition replaces all previous editions of this bestselling title based on the revised and expanded edition corrected and back to the basics。
Financial Statements is a perfect introduction to financial accounting for non-financial managers， investors， business students， lawyers， lenders， entrepreneurs， and more。 Financial Statements deftly shows that all this accounting and financial-reporting stuff is not rocket science and that anyone can understand it！
Ittelson empowers non-financial managers by clearly and simply demonstrating how the balance sheet， income statement， and cash flow statement work together to offer a snapshot of any company’s financial health。 Every term is defined in simple， understandable language。 Every concept is explained with a basic， straightforward transaction example。 And with the book’s uniquely visual approach， you’ll be able to see exactly how each transaction affects the three key financial statements of the enterprise。 Each statement paints a different and essential picture—the “three-legged stool” of company reporting:
• The income statement shows the manufacturing （or service offerings） and selling actions of the company that result in profit or loss during a period。 It gives a very important perspective on the company’s performance， its profitability。
• The cash flow statement details cash into and out of the company for a period。 You need money to make money。 Running out of cash is bad。 Duh。
• The balance sheet records at the end of a period， an instant in time， what the company owns and what it owes， including the owners’ stake， called shareholders’ equity。
Reviews
Jeannette
，
Easy to understand。 Only got about 3rd of the way through。 Just tedious。
Shifu Fong
，
best financial statements book i have ever readIt is so easy to understand This book is good enough for some one like who just to know more about the financial statement analysis to invest in the stock market
Nilesh P S
，
Short， right on point and well worth the read。 Included pratical examples on book keeping are invaluable to understanding a business。
Franklyn Gonzalez
，
A good start in diving into accounting。 Not a workbook for accounting but informative for certain situations。
Cameron
，
Seems slow and overly simplistic at first， but it becomes informative later。
Acy
，
first book to start from here。
Quy Dang
，
Sách rất hay và hữu ích cho việc bắt đầu tìm hiểu về tài chính và đọc hiểu báo cáo tài chính cơ bản。
Mick
，
Great book， but the last ~1/3 is somewhat inconsequential and not fully relevant to the core subject matter。 I also found it to be riddled with errors， mainly in the tables， diagrams and equations。 It was almost like no editor was employed to look at the technical components。 Those minor issues aside， it was extremely useful for very quickly and easily understanding the concepts and construction of financial statements， as well as also seeing them applied through examples using a mock company。 I Great book， but the last ~1/3 is somewhat inconsequential and not fully relevant to the core subject matter。 I also found it to be riddled with errors， mainly in the tables， diagrams and equations。 It was almost like no editor was employed to look at the technical components。 Those minor issues aside， it was extremely useful for very quickly and easily understanding the concepts and construction of financial statements， as well as also seeing them applied through examples using a mock company。 I was concerned that this would be a hard/boring read， but due to the lightweight presentation of the content and the ease in which it can be consumed， this turned out not to be the case at all。 Being able to read a book like this in a matter of hours is definitely a plus。 。。。more
Madeline
，
Eye-opener。 As an account student， I love this book！
Ali Abutartoor
，
Excellent book which explains things very simple。 Lost two stars because of significant editing mistakes and could have used a few more examples， with each new financial statement showing the effect of the new step on the old statements
Ryan Simmons
，
Im almost embarrassed with how much I enjoyed this book。 I have a great understanding of financial statements now， and an easy reference if I need to review something。
Ugh
，
This is a four-star review taking the book on its own terms， rather than judging it based on how well it did what I wanted it to do。It does strike me as a slightly odd book， though。 Mostly it walks you through company financial statements， showing you how various business activities should be dealt with in the various kinds of statements: the income statement， cash-flow statement and balance sheet。 This seems of most use to business studies students and people starting their own companies。A chun This is a four-star review taking the book on its own terms， rather than judging it based on how well it did what I wanted it to do。It does strike me as a slightly odd book， though。 Mostly it walks you through company financial statements， showing you how various business activities should be dealt with in the various kinds of statements: the income statement， cash-flow statement and balance sheet。 This seems of most use to business studies students and people starting their own companies。A chunk of it covers ways of looking at the health of companies， which is probably of most use to beginner investors who haven't read similar elsewhere。 This section is pretty brief， so if that's what you're after I'd suggest you look elsewhere， but it struck me as a reasonable refresher / introduction。I came to the book wanting to know more about financial statements for the purpose of investing。 I'd say it was moderately helpful in that regard， which is reasonable as it doesn't seem to have been written with that in mind， but more， as I said， for students and entrepreneurs。 I still don't feel like I can confidently look at financial statements and declare them healthy or unhealthy。Possibly the most useful part of the book for me was its look at businesses' use of capital for growth。 It explains why and how to compare the value of money in hand today versus the value of money invested （or not） down the line， after inflation。I can't recommend this as THE go-to book for financial statement analysis for investing， but until I hear about something better， I'd say it's worth a look。 。。。more
Katerina Molchanova
，
It's the best boon on the subject I've ever read。 It's the best boon on the subject I've ever read。 。。。more
Ornella
，
A great book on understanding financial statements and key financial terms for investment。 Definitely a good start for people who have zero knowledge or forgot about finances of an enterprise。 Also a good primer for beginner value investors。 I will read it again， to review the main messages of the book。 This should present a knowledge primer allowing me to move to more challenging books suck as The Intelligent Investor。
Cian
，
Quite detailed book on the three main financial statements with a case study。
Mohamed Almahdi
，
I have read this book because I am in a process of educating myself about the current financial system governing this world。 The outcome of this education process might directly or indirectly benefit me in my career or in my life decisions。Life has become very complex。 To guarantee a chance of having a decent life in this complexity it has become required to understand the complex tools that is embedded in this complex system。 Similarly to modern computers， what we experience in this life is the I have read this book because I am in a process of educating myself about the current financial system governing this world。 The outcome of this education process might directly or indirectly benefit me in my career or in my life decisions。Life has become very complex。 To guarantee a chance of having a decent life in this complexity it has become required to understand the complex tools that is embedded in this complex system。 Similarly to modern computers， what we experience in this life is the front end but what governs life is the back end。 In my honest opinion， understanding the financial system and how it operates would allow me to understand a portion of life complexity。I have read two books about accounting and finance， this book has been the best and the most comprehensive so far。 It explains the concepts and the elements constituting financial statements and then provides detailed scenarios on how these elements are interrelated。 The detailed scenarios of the book comprehensively covers many stages an enterprise would go through from establishment to expansion and going to public， things I have not seen mentioned in the popular accounting and finance books I previously read。 The comprehensiveness of the book would make it a very good reference for non-financial and non-accountant， it is a non-one-time-read book。 Some of the topics covered in this book includes， but not restricted to:t* Costs vs expensest* Risk and Uncertainty of Investments （e。g。 the risks and uncertainties of expanding the business of a successful applesauce factor。）t* Discounted cash flow analysis and investment rate of return。t* Weighted Average Cost of Capital （aka WACC） and risk premiums。t* Fixed costing and variable costing。t* Standard costs， actual costs， and the costing variances。t* Volume based break-even analysis。t* Profitability and financial ratios。t* Creative accounting。t* Venture capital and leverage。t* Par value， diluted earnings and basic earnings。The only thing I regret about this book is reading it on Kindle。I highly recommend the book to non-finance and non-accountants interested to know about accounting and finance， investors， and the individuals interested in understanding the surplus value generated by the capitalist mode of production。 。。。more
JOY
，
một cuố sách rất hay về kế toán， đàu từ và quanr trị doanh nghiệp
Archit
，
1。 For a non-finance person， this book will serve well。2。 For a finance professional， it's not very impactful。 Instead the following books can be read: 1。 For a non-finance person， this book will serve well。2。 For a finance professional， it's not very impactful。 Instead the following books can be read: 。。。more
Ramil
，
I have had a serious difficulty to understand the way financial statement is constructed and how different elements are connected to one another in it。 After reading through this book， now everything is clear to me。 Every element in a financial statement is perfectly explained based on the vivid examples by author， which ease the comprehension process of the whole concept into you。
Dat Thai
，
Hài hước， không sa đà vào "định khoản" - học kế toán thì cứ như bị ám ảnh với định khoản vậy。 Hài hước， không sa đà vào "định khoản" - học kế toán thì cứ như bị ám ảnh với định khoản vậy。 。。。more
Manoj
，
For those with a non-finance background yet needing to understand the the financial statements line by line， I recommenced this book before anything else。 Simple to read and well written。
Chiraag Bohra
，
Excellent book for any person with no previous knowledge in this field！
Adrian Bercovici
，
A total must read for anyone that wants to :- start a business- get some accounting basics- invest in the stock market （my case）I knew there is alot more to company valuation then reading bloomberg news ， checking the P/E ratio ， ROI and Growth。This book provides you with the building blocks of starting a business and of course by learning how to build ， one learns to evaluate one business worth。Impressive diagrams ， schematics and comments。 This book brings you in ~300 pages from zero to hero i A total must read for anyone that wants to :- start a business- get some accounting basics- invest in the stock market （my case）I knew there is alot more to company valuation then reading bloomberg news ， checking the P/E ratio ， ROI and Growth。This book provides you with the building blocks of starting a business and of course by learning how to build ， one learns to evaluate one business worth。Impressive diagrams ， schematics and comments。 This book brings you in ~300 pages from zero to hero in thr field of finance ， accounting ， management and investing。The author treats the financial statements in depth ， taking all items one by one and discussing ， explaining the intricate relationships betweeen them。It is a shame books of financial tycoons such as Buffett/Lynch and all those "startup gurus" get all the media while this hidden gem is barely noticeable。Masterpiece ！ 。。。more
Từ Đọc Đến Viết
，
Một cuốn sách rất hay và dễ hiểu cho những người ngoài ngành， không hiểu về tài chính doanh nghiệp， báo cáo tài chính hay nghiệp vụ kế toán。 Cuốn sách được xây dựng từ những định nghĩa căn bản trong việc lập báo cáo doanh nghiệp đến việc lấy ví dụ về một công ty giả định với những giao dịch từ khi thành lập công ty để người đọc dễ hiểu và dễ áp dụng。 Điều quan trọng là cuốn sách khiến cho những người không có kiến thức cơ bản về tài chính như mình cảm thấy hứng thú và đọc hết cuốn sách mà không Một cuốn sách rất hay và dễ hiểu cho những người ngoài ngành， không hiểu về tài chính doanh nghiệp， báo cáo tài chính hay nghiệp vụ kế toán。 Cuốn sách được xây dựng từ những định nghĩa căn bản trong việc lập báo cáo doanh nghiệp đến việc lấy ví dụ về một công ty giả định với những giao dịch từ khi thành lập công ty để người đọc dễ hiểu và dễ áp dụng。 Điều quan trọng là cuốn sách khiến cho những người không có kiến thức cơ bản về tài chính như mình cảm thấy hứng thú và đọc hết cuốn sách mà không cảm thấy nhàm chán。 。。。more
Sinh Tài
，
Great for non-finance types who want an interesting and applicable approach to financial reporting without going into details as in Accounting 101 classes。 You get to understand the concepts of financial reporting， how the 3 statements are connected and most importantly what all the numbers and jargon really mean to a business。 All are delivered in simple language with a good sense of humor of the author。Also great for finance types who want a quick but thorough revision of financial reporting。 Great for non-finance types who want an interesting and applicable approach to financial reporting without going into details as in Accounting 101 classes。 You get to understand the concepts of financial reporting， how the 3 statements are connected and most importantly what all the numbers and jargon really mean to a business。 All are delivered in simple language with a good sense of humor of the author。Also great for finance types who want a quick but thorough revision of financial reporting。 "This accounting and financial reporting stuff is not rocket science。" 。。。more
Dean Lewis
，
The best book that explains the way to develop accounting entries to set up an initial set of financial statements。 Clearly based on current accounting definitions and commonly held accounting conventions。 Written to pull a reluctant reader along。
Mihai Cosareanu
，
Great book on the basics of reading statements and understanding the flow of money and the flow of goods。
Yury
，
It is a good intro into understanding financial statements and reports。 It was very engaging read from through the whole book。
Anna
，
I read 2009 edition （2020 is coming out in April）。 It reads almost like a story。 It uses simple language making it very easy to grasp concepts。
Dennie
，